Super Group’s SG Fleet Considers IPO as Private Equity Exits

Super Group Ltd.’s SG Fleet, an Australian vehicle leasing and fleet management provider, is considering an initial public offering in that country as a private-equity firm looks to sell its 42 percent stake.

Super Group, which owns about 51 percent of SG Fleet, will keep control of the fleet management provider, the South African transportation company said in a statement today. CHAMP Ventures Pty will sell its stake if the IPO proceeds.

Super Group’s stock rose as much as 1.9 percent to 27.62 rand after the announcement. It traded 0.4 percent lower at 2:22 p.m. in Johannesburg, compared to a 1.1 percent decline in the FTSE/JSE Africa All Shares Index.

“A listing would improve SG Fleet’s profile, help it sign more contracts and is usually a good management retainer,” Brent Madel, an analyst at Cape Town-based BPI Capital Africa Pty, said by phone. “We will still need to see what response it gets for a listing as it would be a small-cap stock and there would be some liquidity issues as a result of Super Group’s holding.”

SG Fleet will release a prospectus on about Feb. 13, with shares expected to start trading in March, according to the statement. The company forecast fiscal 2014 earnings before interest, taxes, depreciation and amortization of 61.7 million Australian dollars ($54 million), rising to 66.8 million Australian dollars in 2015.

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